1.What economic inefficiencies does the original Uber operating model exploit? How does your answer change for drivers who rent cars to provide Uber services? Compare the economic inefficiencies addressed by Uber vis--vis Didi Dache.

2.What economic concept relates a cut in prices to an increase in demand? Explain how to use this concept to calculate the change in revenue from a 1% cut in prices. In Chicago, the reduction of fares by 23% led to 12% increase in revenue. What do these data imply about the concept in (2)?